In the above figure, the initial supply of loanable funds curve is SLF0 and the demand for loanable funds investment curve is DLF0. An increase in the real interest rate to 7 percent could be caused by
A) an increase in investment demand.
B) a decrease in the expected profit.
C) an increase in people's disposable incomes.
D) an expansion that increased both saving and investment by the same amount.
A
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The supply curve shifts rightward from S0 to S2 when the U.S. interest rate ________ and foreign interest rates are unchanged. The supply curve shifts rightward from S0 to S2 when the expected future exchange rate ________
A) falls; falls B) rises; rises C) falls; rises D) rises; falls E) None of the above answers is correct because the factors mentioned lead to movements along the demand curve and not to shifts of the demand curve.
The table above gives a firm's total product schedule. Suppose labor is the only variable factor of production. The price of labor is $500 per week and total fixed costs are $600 per week. What is the marginal cost of producing the 90th unit?
A) $10.00 B) $24.92 C) $31.61 D) $50.00